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Depressing times don't call for depressing actions -- Stop telling your clients to drop their prices - that's not the reason its not selling!

By
Real Estate Agent with Better Homes and Gardens Real Estate Metro Brokers 290004

Last night I turned on my computer and was shocked to see such depressing news on Valentine's Day. The school shooting at Northern Illinois University is a sad reminder of how just 1 depressing action can affect everyone around the world.

NIU Shooting Photo by Eric Numberg

Depressing times don't call for depressing actions! Did you know the number one reason people aren't buying right now is because the media and some agents have been telling their clients that they should wait. Guess what-- that's part of the problem.

With everyone saying wait til the spring to buy, people are actually hurting the economy and that home they want to buy. This is also a time to remember that keeping the sales price higher and giving other incentives is the way to go. Why contribute to the drop in home values when you can help your clients and their future neighborhoods by keeping that list price stable. Yes, that home might not sell in 10 days but if the house is in a good location and has been priced where it should be-- the home will sell. Please don't take drastic measures by dropping prices so you can quickly bring home a paycheck for yourself. That's not the answer. In the end, those deep price drops only hurt ALL of us!

Although last night Alan Greenspan said he thinks the housing market will continue to erode until the cause of the deterioration ends.

 

"Where all the problem is coming from is the continuous marking down of the value of those subprime securities," he said. "Until we stablize the price levels of home... you're going to continously get loss estimates" from banks and other financial institutions.

Alan Greenspan

If you have buyers waiting to buy, please remind them that now is the time to buy before the good homes go quickly because once all the buyers come out of those gates ready to buy that perfect home might already be gone.

Thanks fellow agents for thinking about this and helping our economy bounce back.

Kelly Blake
Atlanta REALTOR
678-587-4519
http:KellyBlake.com


Show All Comments Sort:
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Good morning Kelly,

 

Couldn't agree more.  Each time a potential buyer " waits " instead of moving forward they are rewarded because by waiting they may see yet another reduction.  This may work to a point but if they try to outguess the market they may lose the house they really want.

Feb 15, 2008 12:40 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

With the rates as low as they are currently, NOW is the time to BUY!  We do have issues here with Sellers who want to price their homes according to the pre-2007 mortgage crisis and DO need to drop their prices.  However, waiting to buy is NOT the answer!


Feb 15, 2008 12:45 AM
Catherine Cataletto
Tom Marco Real Estate - Staten Island, NY

Kelly,

Sorry but I have to disagree with one comment..,and that's don't drop prices..In my market place we have to choice to drop prices because if we do find buyers that will pay decent prices for our homes...the home will NOT APPRAISE..BECAUSE OF ALL THE BANK OWNED AND SHORT SALES...I have lost many deals within the last 5 months, lost more then I kept together..So perhaps I am missing something..the only way to sell homes in my market is to lower prices and then that still doesn't assure a sale,,you still have to be the best home on the market.

However, I do agree with the buyers..they're all on the fence and they need to get off.

Cathy 

Feb 15, 2008 12:47 AM
Vanessa Plante-McDonald, MBA, REALTOR® - Cash Rebate to ALL My Buyers!
Bethel Equities, LLC - Laurel, MD

I think a lot of buyers like myself simply won't purchase a house today for $600,000 ESPECIALLY if that house was selling for $400,000 4 years ago.

The numbers no longer add up!

Feb 15, 2008 12:52 AM
Vanessa Plante-McDonald, MBA, REALTOR® - Cash Rebate to ALL My Buyers!
Bethel Equities, LLC - Laurel, MD

I'm on the fence too and was getting ready to put a offer on a home but then I ran the comparables and decided against it.

The last thing anyone wants to be is be upside down an what's supposed to be an asset. 

Feb 15, 2008 12:54 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth
Kelly, I think the cause for the "depressing times" is supply and demand and of course psychology of buyers and sellers. More foreclosures add to supply and buyers struggling with higher energy costs are eating into their disposable income not allowing them to afford as much house plus the media drumbeat of all the negative news. The school shooting was another tragedy in our times.
Feb 15, 2008 12:56 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County
Until the inventory is stabilized at a reasonable level home prices will continue to drop. It is a good time to buy!
Feb 15, 2008 12:58 AM
Jeff Kessler
Austin Homes, Realtors www.OwnAustin.com - Austin, TX
Broker,CLHMS,GRI

Great post.  The media is a real pain the A**.  They generalize so much that it affects the whole country.  I think this is a great time to buy.

J.

Feb 15, 2008 01:00 AM
ActiveRain City and State Listing Group
Christiansted, VI

In Asheville, we are experiencing a rather odd situation. While a lot of the country is talking about and witnessing home prices dropping, we have just hit a record high Average Asking Price of over $454,000 and a record high Median Asking Price of $310,000.

It appears that the lower priced homes are selling and leaving behind the higher priced homes. This could result in a requirement of lowering the prices of the higher priced homes in order to get them sold in a reasonable length of time.

Career minded brokers will do the constant statistical research of their market to keep a finger on the pulse and they will sometimes need to guide their sellers into price reductions, but a wise listing agent will not allow drastic drops or the buyers will sense a notion that the seller is desperate.

The market fluctuates and we need to adjust accordingly. Sometimes, that means a price reduction.

The bottom line, however, is that waiting, if you want to buy, rarely pays off. The market will always grow better. Sometimes it just has to get a grip. Now's the time to get in.

Feb 15, 2008 01:10 AM
Kelly Blake
Better Homes and Gardens Real Estate Metro Brokers - Lilburn, GA
Kelly Blake

Bill Gillhespy - Yes, those buyers think that waiting is a good thing; ironically when they are sellers they'll be singing to another tune. THANKS

Debe Maxwell - Your right those mortgage rates are great right now. I know of one person that waited and now they lost the lower rate they had 2 weeks ago. Too bad they got greedy! THANKS

Cathy Cataletto - Those foreclosures are definitely hurting everyone. Although I wish appraisers would take in to consideration that foreclosures aren't fair market value - they are "UNFAIR" market value and they shouldn't use that as the sole reason to not appraise the house next door to what is should be worth. It's a vicious cycle. THANKS for your input.

Vanessa Plante McDonald - I could see how those high priced homes would need a price reduction but these fire sales are ridiculous and preventable. THANKS

Gary Woltal - I think this month will be my highest heating bill of the year. The energy bills can really hurt too. THANKS

Gary Waters - Yes, it's a GREAT TIME TO BUY! THANKS

Jeff Kessler - When those reporters start realizing that they are only hurting themselves maybe they'll start spreading some positive news too. THANKS

Don Davies - That's terrific news for Asheville. Keep up the good work! THANKS

 

Feb 15, 2008 01:30 AM
Roland Woodworth
Blue Cord Realty - Clarksville, TN
Benchmark Realty

Kelly.... Great post.... Our market is a little slower at this time, but has never been a bad market as one would believe if they were watching the news.

2008 is going to be GREAT !

Feb 15, 2008 01:38 AM
Vanessa Plante-McDonald, MBA, REALTOR® - Cash Rebate to ALL My Buyers!
Bethel Equities, LLC - Laurel, MD

Kelly,

I will agree that there are some fire sales and great deals but for the most part, a lot of homes are grossly overpriced.

Vanessa.

Feb 15, 2008 12:54 PM
Kelly Blake
Better Homes and Gardens Real Estate Metro Brokers - Lilburn, GA
Kelly Blake

Roland - You're right 2008 is going to be great. Expect to see movement in March!

Vanessa - I agree there are a lot of homes overpriced but I hope before people make hasty price drops they look at what has gone under contract. They'll probably notice that not a lot has lately so it might not be price right now. It may be that all the buyers are waiting til March (a.k.a. SPRING) Let's hope it gets here sooner than later. THANKS

Feb 18, 2008 12:55 PM